Real Estate is an industry today undergoing a significant digital transformation. The use of technology is playing an important part in this process: from CRMs to virtual staging and digital transactions. These innovations make property management more convenient: for clients, agents, and everybody else involved.
The Importance of Technology in Real Estate
Today, we live in a world where tech-savvy users set the course of business. They use technologies to satisfy almost all their needs and are a large segment of the market. Although the Pandemic damaged some markets, the real estate industry and property technology are booming. According to Forbes, 2021 was a record-breaking year for real estate: the proptech sector has grown to over 8,000 companies, compared to 2,000 ten years earlier. Here are some numbers:
- by 2025, the Real estate software market is projected to reach $12.89 billion
- industry experts state that 53% of real estate companies are now making tech investments
- 85% of residential companies use multiple listings software
- 90% of real estate businesses have a web application
- up to 43% of potential homebuyers start the process by looking online
- in 2021 there was a 21.9% gain in annual home sales, the highest numbers since the 1980s.
According to statistics as of 2021 market growth was observed in every region
- in North America — $1.59 trillion
- Asia Pacific — $1,50 trillion
- Europe, Africa, and the Middle East — $797 billion
- Latin America — $51.5 billion
The impact of technology on the industry increased over the years. Since real estate companies realized the advantages technical solutions can offer their business.
What Is Proptech?
The term combines two words: property and technology. And defines the usage of technology in real estate. The goal is to make the processes of buying leasing, renting, buying, selling, and managing properties easier for everyone involved.
Here are a couple of real estate challenges PropTech can help with:
- Building management
- Transactions
- Customer experience
- Data management and security
- Marketing
- Performance tracking
- List management and compliance
What else can bring IT to the real estate business? Inoxoft expert prepared a list of the most important technology trends in real estate development that may help your business.
Technology in the real estate industry in 2022
The most common technology used in real estate is online visualizations of property. But here is the list of other technologies for real estate development that will shape the industry in 2022.
Artificial Intelligence
How can AI and chatbots assist you? Companies implementing AI technology to get reliable market forecasts and predictions of the future home’s value. Also, the technology simplifies the work for real estate agents and lets them focus on core operations. As virtual assistants can respond instantly 24/7 and ask relevant questions that will help you get to know your client’s needs ahead of time.
Machine Learning & Automating Home Valuation
Another technology in the real estate industry is image recognition which simplifies the way clients find homes. Сompanies, use it to identify pixel patterns in a photo, so they can gather information on a home to categorize and calculate the home value more accurately.
ML algorithms examine a number of homes in the area. Thus, helps homeowners and real estate agents identify factors that might impact a home’s selling price. Also, technology help to determine whether a remodeling project makes sense before putting the home on the market. The role of technology in real estate during the home valuation process is to automate routine tasks and eliminate human mistakes.
Customer relationship management software is another useful tool for the real estate business. It manages contacts, store data, tracks leads, and keep track of the progress. Real estate agents can have their online accounts to see all of their interactions with potential and current clients. They can make selections to send messages to different groups of people who can deal with them.
Hoa-management-software
HOA management software is a useful tool in accounting management and processing payment data. You can manage online portals, share documents, and orders related to work. Also, you will be able to track board members’ progress and bulk charges for assessments via the HOA database services. Also, with a custom, HOA management software you can automate your management processes such as tracking due dates, monitoring board members, store documents. And also integrate different relevant software (CMS, MLS, IDX, calendars, payment gateways, etc.)
You may also be interested in the meaning of CRM in real estate
Blockchain
Real estate tech companies can’t avoid emerging technologies, thus blockchain remains among the trends in 2022. This technology is used to store data and automate, accelerate, and track transactions. Also, you can be sure that all verified transactions are confidential and are available only to the network participants you choose. The main issues blockchain application solves in a Real Estate are money transfers, property, transactions, and smart contracts.
With blockchain, real estate agents can create smart contracts by digitizing information and storing it in an encrypted database. And transactions are made transparently and securely.
Blockchain in Real Estate brings the following advantages:
- faster pre-purchase
- no intermediaries are required
- smart contracts
- quick and safe property transactions
- low entrance to Real Estate investing
Augmented Reality
Another related technology in real estate sector that allows clients to get the feeling of walking through your listing is AR. Computer-generated images are superimposed on a virtual simulation of the space. This technology allows agents to virtually stage listings so clients can change the look of a home and see how the property can work for them.
Cloud integration
Another technology in commercial real estate is the cloud. It makes operations more efficient, whether you are renewing a lease with a renter or dealing with an internal business. Cloud technology has been employed for a while now for remote closings, electronic document signature, and other operations that used to be carried out in person.
Geolocation and localization
Geolocation, as one of the technology trends in real estate development, assists in searching for the exact property location, visualizing factors such as property data, county maps, flood zone maps, and soils in order to estimate the land value.
Technology trends in real estate development
Here are some thoughts from Inoxoft experts on technology trends in real estate we can expect year.
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Originally published at https://inoxoft.com on April 6, 2022.
